Gyroscopic Investing

For all the year's wailing and gnashing of teeth over the PP's poor returns, let's compare the PP's YTD performance not to 100% stock returns but to the kind of alternative portfolio that reasonably informed and financially savvy people actually have: say, a Boglehead-type 50/50 portfolio, which can be represented by the ETF AOM. Here's the PP (green line) vs AOM (blue line) for the year so far:

[img width=600]https://i.imgur.com/HncsFEL.png[/img]

And since the beginning of 2009:

[img width=600]https://i.imgur.com/HZ8uXsd.png[/img]

And this is during a crazy bull stock market and doesn't factor in rebalancing!

Also note, this is with the dreaded 25% cash allocation that so many newcomers to the PP love to hate...

Wonderful plots PS!

Definitely interesting, although that allocation is 40/60 stock / bond (slice & dice; lots corp bond.)

https://www.ishares.com/us/products/239 ... cation-etf

Whenever I feel like backsliding, I listen to CS&N's "Almost Cut My Hair" and run etfplay.com using GLD,TLT,VTI,SHY @ 25% each vs VBINX from 1/1/2007 to current...  That also doesn't take into account rebalancing but it does show why I like the HBPP in potentially troubling times...

Dieter wrote: Definitely interesting, although that allocation is 40/60 stock / bond (slice & dice; lots corp bond.)
https://www.ishares.com/us/products/239 ... cation-etf

That's a good point. I think it would be fairer to run the pp against Vanguard's Target Retirement 2020 Fund (VTWNX).
Still, from the chart I can see that the pp is doing better than I thought. Once again, I am reminded that I don't learn much by looking at the pp's individual assets.

Just saw your other thread in which it is clear that you have to use an ETF ticker. Hmmm.

For comparison purposes, my 40/60 allocation (SPY - 22, GLD - 18, TLT - 20, CASH - 40) is positive 1.09%. Gold had a negative impact on returns YTD. I suspect AOM doesn't have an allocation to precious metals.

Pointedstick,

What did you use to create the charts in your OP??

versed1967 wrote: Pointedstick,

What did you use to create the charts in your OP??

http://www.etfreplay.com/combine.aspx

PP67 wrote: Whenever I feel like backsliding, I listen to CS&N's "Almost Cut My Hair" and run etfplay.com using GLD,TLT,VTI,SHY @ 25% each vs VBINX from 1/1/2007 to current...  That also doesn't take into account rebalancing but it does show why I like the HBPP in potentially troubling times...

Yeah, my reaction too.  And not just from 1/1/2007.

I miss CS&N.